Commodity Trading Tips for Aluminium by KediaCommodity

Ajay Kumar Kedia 1 September 2014

Aluminium settled up 0.4% at 126.7 as faster U.S. expansion added to signs of rising metals demand amid shrinking inventories. The U.S. economy, the world’s largest, grew more than previously forecast in the second quarter, government data showed. Orders for durable goods jumped in July by the most on record as bookings surged for commercial aircraft, the Commerce Department said Aug. 26. Prices have surged 16 percent this year as stockpiles tracked by the London Metal Exchange fell to a two-year low. Demand for the metal will exceed production by 1.8 million tons this year and 1.5 million tons in 2015. LME-tracked stockpiles fell 3.3 percent this month to 4.8 million tons, the lowest since July 2012. Russian-UC Rusal- the world's largest aluminum company has announced to keep its production below capacities during the rest of the year, despite rising aluminum prices. The company plans to restrict its cumulative aluminum output to 1.8 million mt during July-December period this year. The company expects aluminum prices to remain positive in the second half of the year. The premiums are also likely to improve. The number of Germans without jobs rose unexpectedly by a seasonally adjusted 2,000, in relation to expectations for a 5,000 fall, presaging a choppy recovery in the euro zone economy. In addition, growing tensions between the European Union and Russia also painted a gloomy picture for the single currency area’s economic outlook. Technically market is under short covering as market has witnessed drop in open interest by -0.04% to settled at 7259 while prices up 0.5 rupee, now Aluminium is getting support at 125.6 and below same could see a test of 124.5 level, And resistance is now likely to be seen at 128.4, a move above could see prices testing 130.1.